Will Chinese Commodities Derail The Global Reflation Trade?

Leland Miller and Derek Scissors on why investor excitement over Chinese capacity cuts this winter is oversold, and the serious implications for the global reflation trade.

By

Leland R. Miller and Derek Scissors

Nov. 22, 2017 11:06 p.m. ET

By

Leland R. Miller and Derek Scissors

Nov. 22, 2017 11:06 p.m. ET

For over a year, commodities bulls have feasted on China. In the aftermath of the recent Communist Party Congress, many investors are now drooling over the prospect the boom will continue, based on Beijing’s promises to supercharge its campaigns against overcapacity and pollution this winter. If such pledges are fulfilled, the thinking goes,...